FOREIGN ECONOMIC AND COMMERCIAL POLICY


  and after several months made up a list of topics on which he requested
  studies be prepared by the appropriate Executive agenciesA
    At first State's studies were sent directly and mnformally to Mr.
 Gray. This resulted in inadequate coordination and in July the dor-
 mant DDG was specified as the clearance mechanism within the De-
 partment for all past and future papers written for Mr. Gray. From
 July to September the group considered, revised and cleared some
 fifteen studies on topics in foreign economic policy assigned to State,
 (subsequently sent to Mr. Gray) as well as a -number of studies pre-
 pared in other agencies and sent to State by Mr. Gray for depart-
 mental comment.4
   From September to November the group reviewed the three suc-
 cessive versions of Mr. Gray's Report to the President on Foreign
 Economic Policies and acted as the focal point for receiving and con-
 sidering departmental comments on those drafts.5
   Evaluation of Effectivene8s: Although at first not used, the Group
 effectively filled an important need.
   Further Staff Action Required: The Gray Report has just been
 published in its final form; E has suggested that the Working Group
 be. put "on ice" pending further information on what the next
steps
 will be vis-a-vis the Gray Report in the interdepartmental arena."
   S/S-S will, after a reasonable period, take steps either to reactivate
 or terminate the Working Group.7

   3 Documentation in the DDG files (Lot 122, Box 15559) indicates clearly
the
 concern of the Department of State at these developments, or lack thereof.
There
 was a further problem: The Department's informal but strong feeling was
that
 the Gray group was concerning itself with much more than the dollar gap
 question.
 'These studies were prepared mainly in or under the guidance of the Depart-
 ment of State. The Economic Cooperation Administration (ECA) was the
 originator of certain of the papers. Whether taken separately or collectively,
the
 papers compiled in this DDG operation constitute a valuable reference source
 for the whole range of foreign economic policy at this time. For a list
of the
 papers, see editorial note, infra.
 'The Department of State performed a very active role in this review process.
 The review documentation is found in the DDG file (Lot 122, Box 15559).
 " The Report to the President on Foreign Economic Policies ("the
Gordon Gray
 repoirt") was released to the public on November 10, 1950, with a Statement
by
 the President. The Report consisted of 99 pages of text and a statistical
and
 tabular appendix of 30 pages. (Washington, Government Printing Office, De-
 cember 1950.p)
 'The Departmental Dollar Gap Group was dissolved as of December 15, 19,50.


                           Editorial Note
  The following studies were prepared by the Department of State
Dollar Working Group and are located in Lot 122, Box 15559:
DDG    D-1:      Procedural
IDDG D-2:        Procedural


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